“The Gangmasters Licensing Authority (GLA) has informed Sainsbury’s that they are due to conduct an investigation into the illegal use of travel and subsistence schemes and umbrella companies by labour agencies in the UK Food Manufacturing Industry. They will be investigating concerns that labour agencies are using such schemes without dispensation from the HMRC to exploit workers (deductions resulting in workers being paid below the minimum wage and losing out on benefits) and to avoid paying tax. This alert is to ensure that all labour providers used by Sainsbury’s direct and indirect suppliers covered by GLA licensing are following HMRC guidance re travel schemes and umbrella companies

M&S and Tesco are also planning to be involved